I can not blow it up. That means I know of no reason whatsoever that it could wind up insolvent in five years.
That does not mean it can not happen. If 9.11 had been nuclear they might have had problems - but as my "Risk Aversion Berkshire Style" post makes clear fat tail risk is not part of the formula.
So why is the five year credit default swap spread on Berkshire over 200bps? I have no idea and it makes no sense to me.
Maybe it is just irrational bearishness about everthing (ie BUY HARD) or maybe there is something I do not know.
So if anyone wants to post/reply a case for Berkshire CDS please...